Buying a home in London can be a complex process, especially for international buyers. In this ultimate guide for foreigners, we explain the step-by-step purchase process, taxes involved, and answer the most frequently asked questions.
Despite economic uncertainty, London’s property market continues to show gradual growth. In this article, we explore the latest trends in international property investment in London and provide a detailed breakdown of the buying process for foreigners.
It seems that new homes in London are resilient to nearly all types of global turbulence – from pandemics to economic challenges. On average, property prices in London rose by 5–10% in 2021, with a similar trend continuing in 2022.
Many experts predict a 20% price increase over the next decade. In fact, several market analyses estimated that £33 billion would be invested in UK real estate in 2022 alone. As a result, finding the right property is crucial for both local and international buyers looking to purchase a new home in London. So, what makes the market so attractive, and how does the process work for overseas buyers?
Many investors believe that the UK property market is one of the most stable and predictable in the world. Constant demand for real estate continues to drive price increases of 2–10% and rental yields of 4–10%.
The British Pound is the third most popular currency in Europe, making it especially attractive for investors. Many even consider it more stable than the Euro or US Dollar. In other words, investing in the London property market can help reduce currency risk.
Moreover, investing in this market allows investors to diversify their portfolios by choosing a politically and economically stable environment.
We’ve answered this question in more detail in another blog post to keep this one concise: Buying Property for Investment Purposes.